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How to Cope with Job Loss, Layoffs, and Job Insecurity: Science-Backed Strategies for Resilience

Losing a job—or even facing the threat of layoffs, cutbacks, or restructuring—is one of the most stressful challenges anyone can experience. Even if you’ve always received positive performance reviews, job security isn’t guaranteed. Add in today’s uncertain economy, where companies hesitate to hire, and the stress of unemployment can feel overwhelming.

The good news: you can build resilience and protect your mental health after job loss. Here are practical, science-based strategies to help you reduce anxiety, manage worry, and stay strong during times of career uncertainty.

Why Job Loss Triggers Anxiety and Panic

When your employer announces layoffs or restructuring, your mind naturally jumps to worst-case scenarios:

  • “What if I can’t find a new job?”
  • “What if I never recover financially?”
  • “What if I end up bankrupt or homeless?”

This kind of catastrophic thinking is how worry responds to uncertainty. Unfortunately, your brain doesn’t distinguish between real danger and imagined fears. As a result, your body reacts as if every worry is true—leading to stress, insomnia, and even panic attacks.

But the facts tell a different story:

  • You were hired and paid because an employer valued your skills.
  • You gained experience and abilities that other employers also value.
  • Losing one job doesn’t define your future.

A resilient mindset shifts from “Why me?” to “Why not me? I’ve found jobs before, I can do it again.”

Why Reassurance Seeking Makes Anxiety Worse

Many people cope with job insecurity by constantly checking the news or searching online for reassurance. Unfortunately, reading daily updates about layoffs, recessions, or economic downturns only fuels anxiety.

Instead of asking, “Is the job market hopeless?” ask, “What can I try today to move forward?” Science shows that risk-takers and proactive job seekers are the ones who succeed. Believing in your ability to adapt—even if you don’t know exactly how yet—is the first step toward resilience.

Healthy Coping Strategies After a Job Loss

Here are practical, science-backed ways to protect your mental health and move forward:

Accept the Uncertainty

Instead of fighting the reality of layoffs or job insecurity, practice radical acceptance. Recognize that uncertainty is part of life—and that it can also open the door to new opportunities.

Reframe Negative Thinking

  • Worry says: “The economy is bad, I’ll never find a job.” 
  • Resilience says: “If I’ve found a job before, I can find one again. Employers are still hiring.”

Focus on Your Worth

Don’t let self-doubt convince you otherwise. Remind yourself:

  • You have skills.
  • You are someone’s next great hire. 
  • Setbacks are temporary, not permanent.

Take Care of Your Body and Mind

  • Get enough sleep,
  • Exercise regularly. 
  • Eat healthy foods.
  • Avoid alcohol or substances that drain resilience.

Instead, recharge with positive outlets: read, volunteer, spend time with friends, or start a new hobby. These activities remind you of your identity outside of work.


Additional ADAA Resources: 

Have questions? We’re hete to help.
Frequently Asked Questions
Q&A

What are the causes of depression?

  • There are several possible causes of depression, and they often interplay with each other. Generally, biological or genetic, psychological and/or environmental factors, or a combination of these, are thought to underlie depression.
  • Depression can be a result of a primary psychiatric condition, or it can be secondary to a medical condition. Depression may be caused by use of certain substances, such as alcohol.
  • Some of the medical conditions which can cause depression, are hypothyroidism, certain types of cancer such as pancreatic cancer, Parkinson’s disease, and others.
No

What is Major Depressive Disorder (MDD)?

The most commonly diagnosed form of depression is Major Depressive Disorder (MDD). In 2017, around 17.3 million aged 18 years or older in the U.S. had experienced at least one major depressive episode in the last year, which represented 6.7 percent of all American adults. Depression is the leading cause of disability in the United States among people ages 15-44. 2

Major depression is characterized by an overwhelming feeling of sadness or a loss of interest and pleasure in most usual activities.  

The other symptoms that are associated with major depression include: 

  • decrease or increase in appetite,  
  • insomnia or hypersomnia,  
  • psychomotor agitation or retardation,  
  • constant fatigue,  
  • feelings of worthlessness or excessive and inappropriate guilt,  
  • recurrent thoughts of death and suicidal ideation with or without specific plans for committing suicide, and  
  • cognitive difficulties, such as, diminished ability to think, concentrate and take decisions.  

The symptoms must persist for two weeks or longer and represent a significant change from previous functioning. Social, occupational, educational, or other important functioning are impacted by major depressive disorder. For instance, the person may start missing work or school, or stop going to classes or their usual social activities.  

Watch ADAA's Video - What is Major Depressive Disorder (MDD)?

No

Who is at risk of depression?

  • Depression can affect anyone.
  • Females are more likely to suffer from depression than males, however, depression affects males as well.
  • Some of the risk factors that increase the likelihood of developing depression:
    • Having a family member with depression
    • Stressful life events (Katon 2011)
    • Adverse childhood experiences (Katon 2011)
    • Certain medical conditions may increase risk for depression, for example, stroke, multiple sclerosis, HIV (NIMH)
No

What is the difference between depression and sadness?

Experiencing sadness at one time or another is part of the normal human experience. However, depression is more than the occasional sadness that people experience. When an individual suffers from depression, the sadness tends to be more pervasive or long lasting, and can be accompanied by one or more of the following: decreased interest in pleasurable activities, feelings of hopelessness, low self-worth, excessive guilt, decrease in energy, concentration difficulties, appetite changes, sleep difficulty or excessive sleep, headaches, body aches and pains, and/or thoughts of suicide.

No

Can depression affect physical health?

  • Mental health and physical health are closely inter-related. Depression is linked with changes in the brain. Additionally, depression can increase risk for medical conditions such as cardiovascular disease, stroke, Type 2 diabetes, Alzheimer’s disease, osteoporosis, migraine (NIMH, Steffan et al 2020). Chronic depression can also increase the risk of obesity.
  • Studies show that major depressive disorder may increase risk for cardiovascular disease (Van der Kooy et al 2007). On the other hand, depression may emerge after a myocardial infarction, as a first episode or as a recurrent one (Spijkerman et al 2005).
  • Similarly, studies show that depression may increase risk for diabetes, and diabetes may increase the risk of depression (Mezuk et al 2008, Katon 2011, Oladeji and Gureje 2013). Depressive disorders in people who have diabetes, can lower adherence to diabetes treatment, and can increase the likelihood of ‘poor glycemic control’ and complications from diabetes (Oladeji and Gureje 2013).
No

Does depression affect older adults?

Depression can affect the elderly as well. In fact, it is often missed in the elderly. Elderly with chronic health conditions and related impairment in functioning may be at greater risk of depression. According to the CDC, depression among elderly ranges from 1% to 5% for those living in the community, and is about 11.5% & 13.5% among elderly who are hospitalized and elderly requiring home healthcare respectively (CDC).

No

Can depression affect children?

Just like adults, children can suffer from depression that significantly impairs their social, academic and/or other domains of functioning. For more information on childhood depression, check out this ADAA blog post

No

What is postpartum depression?

When feelings of sadness, low mood, or emptiness after the birth of the baby are significant and persists for 2 weeks or longer, postpartum depression may be present. It may be accompanied by hopelessness, crying spells, decrease in interest or motivation, worthlessness, decreased energy, thoughts of suicide, thoughts of hurting the baby, lack of interest in the baby, sleep difficulty or excessive sleep, appetite increase or decrease, and/or concentration, memory difficulties. Postpartum depression can affect both the mother and the baby in various, significant ways. Timely treatment is important.

No

Is depression treatable?

There are effective treatments for depression which have been established through research; many treatments for depression have been around for years. Many people ignore signs of depression despite experiencing significant suffering. This may be due to stigma, lack of awareness, and/or barriers to accessing care. Untreated depression confers several risks. Discussing your concerns about depression with your doctor can often be the first step in getting professional help.

No

What are the risks of untreated depression?

Untreated depression can increase risk of depressive episodes becoming more frequent, prolonged and/or severe over time and increase risk of suicide. It can significantly interfere with one’s functioning at work, school, and/or in interpersonal relationships. Depression can also increase risk of alcohol and/or substance use disorders. Additionally, depression can worsen the course and outcome of chronic medical conditions, such as diabetes, cardiovascular disease, and others.

No

What are some of the treatments for depression?

Psychotherapy and medications are the most commonly used treatments for depressive disorders. For mild to moderate depression, psychotherapy is generally thought to be the first line treatment. For moderate to severe depression, a combination of medications and psychotherapy is often considered. For severe depression that has not responded to multiple trials of medications and psychotherapy, electroconvulsive therapy (ECT), transcranial magnetic stimulation (TMS) may be some of the treatment options. The type of treatment hat is suitable for an individual depends on an individual’s specific clinical situation.

No

What are other psychiatric conditions that can co-exist with depression?

Anxiety disorders and substance use disorders are some of the psychiatric conditions commonly found co-existing with major depressive disorder (Hasin et al 2018, Steffan et al 2020). Other psychiatric conditions too, such as posttraumatic stress disorder (PTSD), eating disorders, can co-occur with depression.

No
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Karen Cassiday PhD
Karen Cassiday, PhD, ACT
Karen Cassiday, PhD, ACT
Karen Cassiday, PhD, ACT, ADAA Past President's areas of interest are anxiety disorders in children and teens, social anxiety disorder, treatment-refractory OCD, and working with children and teens who suffer from both developmental concerns and anxiety disorders. Her research has ...

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